Question: 1) Which project do you think is more risky? How do you think you should incorporate differences in risk into your analysis?

Question: 2) Based on the calculated payback period, net present value (NPV), and internal rate of return (IRR) for each project, which project looks better for New Balance sharehold-ers? Why?

Question: 3) Should Rodriguez be more or less critical of cash flow forecasts for Persistence than of cash flow forecasts for Sneaker 2013? Why?

Question: 4) What is your final recommendation to Rodriguez? Please explain your answer.

Project 1, Sneaker 2013:

1. The life of the Sneaker 2013 project was expected to be six years. Assume the analysis took place at the end of 2012.

2. The suggested retail price of the shoe was $190. Gross margins for high-end athletic footwear averaged about 40% at the retail level, meaning each pair sold would net New Balance $115.

3. The global athletic footwear market in 2011 totaled approximately $74.5 billion and was expected to grow at a CAGR of 1.8% from 2011 to 2018, reaching $84.4 billion by 2018.3 Based on market research and analysis of other recent athlete endorsements, the New Balance marketing division estimated the following sales volumes for Sneaker 2013: The 2016 number assumed Kirani James participated in the 2016 games in Rio de Janeiro, Brazil, and won at least one medal.4

4. For the first two years, the introduction of Sneaker 2013 would reduce sales of existing New Balance shoes as follows: Lost sales: 2013: $35 million 2014: $15 million Assume the lost revenue had the same margins as Sneaker 2013.

5. In order to produce the shoe, the firm needed to build a factory in Vietnam. This required an immediate outlay of $150 million, to be depreciated on a 39-year MACRS5 basis. Depreciation percentages for the first six years respectively were: 2.6%, 5%, 4.7%, 4.5%, 4.3%, and 4.0%. The firm’s analysts estimated the building would be sold for $102 million at project termination. This “salvage value” has not been taken into consideration when computing annual depreciation charges.6

6. The company must immediately purchase equipment costing $15 million. Freight and installation of the equipment would cost $5 million. The cost of equipment and freight/installation was to be depreciated on a five-year MACRS basis. Depreciation percentages for the six years respectively were: 20%, 32%, 19%, 12%, 11%, and 6%. It was believed the equipment could be sold for $3 million upon project termination.

7. In order to manufacture Sneaker 2013, two of the firm’s working capital accounts were expected to increase immediately. Approximately $15 million of inventory would be needed quickly to fill the supply chain, and accounts payable were expected to increase by $5 million. By the end of 2013, the accounts receivable balance would be 8% of project revenue; the inventory balance would be 25% of the project’s variable costs; and accounts payable would be 20% of the project’s variable costs. All working capital would be recovered at the end of the project by the end of the sixth year.

8. Variable costs were expected to be 55% of revenue.

9. Selling, general, and administrative expenses were expected to be $7 million per year.

10. Kirani James would be paid $2 million per year for his endorsement of Sneaker 2013, with an additional $1 million Olympic bonus in 2016.

11. Other advertising and promotion costs were estimated as follows:

12. New Balance had already spent $2 million in research and development on Sneaker 2013.

13. The Sneaker 2013 project was to be financed using a combination of equity and debt. The interest costs on the debt were expected to be approximately $1.2 million per year. The New Balance discount rate for new projects such as this was 11%.

14. New Balance’s effective tax rate was 40%.

Project 2, Persistence:

1. The life of the Persistence project would be only three years, given the steep technological learning curve for this new product line.

2. The wholesale price of Persistence (net to New Balance) would be $90.00.

3. The hiking segment of the athletic shoe market was projected to reach $350 million during 2013, and it was growing at a rate of 15% per year. New Balance’s market share projections for Persistence were: 2013, 15%; 2014, 18%; and 2015, 20%.

4. The firm would be able to use an idle section of one of its factories to produce the hiking shoe. A cost accountant estimated that, according to the square footage in the factory, this section’s overhead allocation would amount to $1.8 million per year. The firm would still incur these costs if the product were not undertaken. In addition, this section would remain idle for the life of the project if the Persistence project were not undertaken.

5. The firm must purchase manufacturing equipment costing $8 million. The equipment fell into the five-year MACRS depreciation category. Depreciation percentages for the first three years respectively were: 20%, 32%, and 19%. The cash outlay would be at Time 0, and depreciation would start in 2013. Analysts estimated the equipment could be sold for book value at the end of the project’s life.

6. Inventory and accounts receivable would increase by $25 million at Time 0 and would be recovered at the end of the project (2015). The accounts payable balance was projected to increase by $10 million at Time 0 and would also be recovered at the end of the project.

7. Because the firm had not yet entered the hiking shoe market, introduction of this product was not expected to impact sales of the firm’s other shoe lines.

8. Variable costs of producing the shoe were expected to be 38% of the shoe's sales.

9. General and administrative expenses for Persistence would be 12% of revenue in 2013. This would drop to 10% in 2014 and 8% in 2015.

10. The product would not have a celebrity endorser. Advertising and promotion costs would initially be $3 million in 2013, then $2 million in both 2014 and 2015.

11. The company's federal plus state marginal tax rate was 40%.

12. In order to begin immediate production of Persistence, the design technology and the manufacturing specifications for a new hiking shoe would be purchased from an outside source for $50 million. This outlay was to take place immediately and be expensed immediately for tax purposes.

13. Annual interest costs on the debt for this project would be $600,000. In addition, Rodriguez estimated the cost of capital for the hiking shoe would be 14%.

To earn full credit, program must be free of syntax, run-time, and logic errors; include program comments; use reasonable readable variable names and prompts.

To include variables in the input prompt, you must use concatenation character (+). For example: assume you already asked for input of employee's first name and last name (they are stored into variables FirstName and LastName, then use this prompt to ask for employee's weekly hours which includes the employee's full name in the input statement.

Hours = float(input("Enter " + FirstName + ' ' + LastName + '\'s Weekly Hours: '))

The company which uses this program has TWO employees.

Write a Python application that will allow the user (payroll clerk) to enter payroll data for two hourly employees. Input Data includes:

• Employee ID (string text such as AF101)
• Employee Last Name (string text)
• Employee First Name (string text)
• Weekly Hours
• Hourly pay rate per hour
• Income tax rate

Repeat the above prompt for two employees

Must use if statements to check if the employee requires an overtime pay.

Up to 40 hours on employee’s hourly rate; any hours over 40 must be pay at a time and a half (1.5 of rate). Using , and 2 decimal places for all currency in the output

Display the followings for each employee:

• Display Employee Data (ID, First and Last Name)
• Display Weekly Hours and Hourly pay rate
• Display the Gross Pay (includes overtime if any)
• Taxes Withheld (Gross Pay x Tax Rate)
• Net Pay (Gross Pay – Taxes Withheld)

Then finally output payroll info for the entire company (total amount for both employees)

• Display Company payroll expense (sum of both employees’ Gross Pay)
• Display Total Cash amount to Employees (sum of both employees’ Net Pay)

Sample input/output (user input is in bold italic)

Enter Employee’s ID (i.e. AF101): AS111

Enter Employee’s Last Name: Wong

Enter Employee’s First Name: Wanda

Enter Wanda Wong’s Weekly Hours: 36.5

Enter Wanda Wong’s Hourly pay rate per hour:  50

Enter Wanda Wong’s Income tax rate: 0.25

Enter Employee’s ID (i.e. AF101): AS256

Enter Employee’s Last Name: Johnson

Enter Employee’s First Name: Betty

Enter Betty Johnson’s Weekly Hours: 52

Enter Betty Johnson’s Hourly pay rate per hour:  30

Enter Betty Johnson’s Income tax rate: 0.20

Weekly Pay stub for AS111                       Wanda Wong

36.5 Hours Worked @ $50.00

Gross pay of                                                      $1,825.00

Less Taxes Withheld @ 25.0%                     $456.25

Net Pay                                                                  $1,368.75

Weekly Pay stub for AS256                       Betty Johnson

52 Hours Worked @ $30.00

Gross pay of                                                       $1,740.00

Less Taxes Withheld @ 20.0%                      $348.00

Net Pay                                                                   $1,392.00

Total Company payroll expense for the week: $3,565.00

Total Cash payments to Employees: $2,760.75

For each scenario, indicate whether it is an example of making a probability statement (about samples, using knowledge about a population or parameters) or of inference (about a population or parameter, using data), briefly explaining why (1 sentence). (Example format: “Inference, because ___.”)

a) Using a percentile chart, we figure out how likely it is one of the next 20 babies born in this hospital will be above the 99th percentile for weight.

b) Through census data we know the distribution of income for Canadians. Using the central limit theorem, we figure out how probable it is that a random sample of 500 Canadians will include at least 180 Canadians who fall below a low-income threshold.

c) We run a survey of randomly selected Torontonians to see whether they have had symptoms of fever in the last week. Using the resulting data we form a confidence interval for the true proportion of people in the city who had fevers.

d) We figure out the chance of getting seven heads in a row at least once if a fair coin is flipped one hundred times.

e) We run a regression of grades versus study time for a sample of 1,000 students to estimate the effect of studying on grades.

f) We take the difference between two sample proportions and make a confidence interval for the true difference.

Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her. After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.

Question 1 Based on the scenario above, you should have identified three diseases/conditions we have covered in BIOL122.

• Name two of the diseases/conditions you identified, and

• List two characteristic signs or symptoms (per disease) that you noted in Mary-Lou’s history

• Finally, explain the pathophysiology of both diseases/conditions you named (i.e., explain the changes that cause the disease and relate the typical signs and symptoms of the disease).

Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her. After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.

Question 1 Based on the clinical picture presented above, you should have identified three diseases/conditions we have covered in BIOL122.

• Name two of the diseases/conditions you identified, and

• List two characteristic signs or symptoms (per disease) that you noted in Mary-Lou’s history

• Finally, explain the pathophysiology of both diseases/conditions you named (i.e., explain the changes that cause the disease and relate the typical signs and symptoms of the disease).

6.13 An industrial engineer employed by a beverage bottler is interested in the effects of two different types of 32‐ounce bottles on the time to deliver 12‐bottle cases of the product. The two bottle types are glass and plastic. Two workers are used to perform a task consisting of moving 40 cases of the product 50 feet50 feet on a standard type of hand truck and stacking the cases in a display. Four replicates of a 2222 factorial design are performed, and the times observed are listed in the following table. Analyze the data and draw appropriate conclusions. Analyze the residuals and comment on the model's adequacy.

Show how to enter this in Minitab or whatever spread sheet is used, I don't see how to enter this into cells!

Carbon 14 (C-14), a radioactive isotope of carbon, has a half-life of 5730 ± 40 years. Measuring the amount of this isotope left in the remains of animals and plants is how anthropologists determine the age of samples. Example: The skeletal remains of the so-called Pittsburgh Man, unearthed in Pennsylvania, had lost 82% of the C-14 they originally contained. Determine the approximate age of the bones assuming a half-life of 5730.

(a) 14,000 years

(b) 15,000 years

(c) 17,000 years

(d) 16,000 years

(e) 18,000 years

A stock analyst tracks three companies with stock prices f(t) = 40 + t + t 2 − t 3/10, g(t) = 7 + t − t 2 + t 3/5, and h(t) = 15 + t − t 2/2 + t 3/10 − t 4/200, t months into the year. A monthly buy recommendation is due at the end of August, so t = 8. The analyst believes in ‘momentum investing’ and looks for companies with stock prices that are concave upwards at the time of the recommendation. Which company is recommended?

(a) Neither of the three tracked companies.

(b) All three of the tracked companies.

(c) The company with stock price g(t).

(d) The company with stock price h(t).

(e) The company with stock price f(t).

1. Cells become cancerous after mutations accumulate in the various genes that control

2.

let's say CFTR (encoding the CFTR Cl- channel) has two alleles: + (which encodes a functional product) and - (which encodes a non-functional product). CFTR is a Cl- transporter expressed in many epithelial cells. LDLR is on chromosome 7. A person with the -/- genotype has Cystic Fibrosis but those with either +/- or +/+ genotypes do not. Which of the following is true?

3.

let's say SLC2A4 (encoding the insulin-dependent glucose transporter GLUT4) has two alleles: + (which encodes a functional product) and - (which encodes a non-functional product). If GLUT4 expression is necessary to not have diabetes, which of the following can we definitely conclude? (More than one answer may seem correct but only one answer logically follows the information)

4.

a pretty good definition of a gene is

5.

In the chart:

What is in column A?

Over the last 10? years, a firm has had the earnings per share shown in the following? table:

.

a.??If the? firm's dividend policy were based on a constant payout ratio of? 40% for all years with positive earnings and? 0% otherwise, what would be the annual dividend for

2015??

b.??If the firm had a dividend payout of? $1.00 per? share, increasing by? $0.10 per share whenever the dividend payout fell below? 50% for two consecutive?years, what annual dividend would the firm pay in 2015??

c.??If the? firm's policy were to pay? $0.50 per share each period except when earnings per share exceed? $3.00, when an extra dividend equal to? 80% of earnings beyond? $3.00 would be? paid, what annual dividend would the firm pay in 2015??

d.??Discuss the pros and cons of each dividend policy described in parts a through

In a car racing competition, four car brands are competing, each having two cars representing them. Cars from the same company have the same probability of winning. Each of the cars from Acura, Alfa Romeo and Audi has the same probability of winning the match, while each of Aston Martin’s cars has the probability of winning 1.66 times the probability of winning for each of the other brands’ cars.

(a) What is the chance of winning for each of the Aston Martin's cars?
Round your answer to one decimal place (e.g. 98.7).

(b) What is the chance of winning for each other cars?
Round your answer to one decimal place (e.g. 98.7).

(c) What is the probability of winning for Aston Martin brand?
Round your answer to one decimal place (e.g. 98.7).

(d) What is the probability of winning for each other brand?
Round your answer to one decimal place (e.g. 98.7).